PERRYSBURG – The farmers market may wither if a funding solution isn’t soon found.
City council’s finance committee met Tuesday and discussed its options and proposals made by Visit Perrysburg officials and city administrators.
Visit Perrysburg Executive Director Christine Best said that the future of the market days should have been settled five months ago.
She said the discussions for next year’s budget start in September.
There are 75 vendors asking about the future of the market and she has learned of at least two that are checking out markets in Michigan that are held on Thursday nights.
“As a courtesy, we should be able to tell them sooner than later,” Best said.
The last market day this year is Sept. 21.
“No one has an interest if the fees are still in place,” Best said. “That’s kind of the root cause of the red flag with this whole conversation.
“We asked but nobody wants it, at least in this current configuration.”
The city in August 2022 implemented a new fee structure, which billed Visit Perrysburg for the cost of provided cleanup and police coverage during the markets.
The city charged $10,186 in 2022; this year’s number has not yet been determined.
In October 2022, the Visit Perrysburg board voted to begin an exit plan to find another entity to take over the event.
Other groups are hesitant to take over the event due to the fees, Best said.
After its June 19 meeting, the Visit Perrysburg board proposed a five-year agreement to run additional city events for an additional 20% out of the city’s existing bed tax, which would equal about $150,000. Those funds would be used, in part, to hire a marketing coordinator.
The board also asked that all fees be waived for its events.
Proceeds from the current 3% bed tax are split 50-50 between the city and Visit Perrysburg.
Council’s finance and economic development committee learned of the proposal at its July 11 meeting when Best gave a quarterly report and asked for the status of her board’s proposal. Committee members said they wanted to see negotiations between Visit Perrysburg and city administrators.
As of the city’s last council meeting, which was July 18, no negotiations had been held.
Best said the event raises thousands of dollars for downtown merchants.
She said she provided city administrators with a breakdown of what the $150,000 in additional funds would be spent on. There are 23 market days proposed for 2024; 13 Music at the Market; a three-day arts festival “that would beat up and bury the Black Swamp Arts Festival”; Memorial Day parade and festivities; Home for the Holiday parade and festivities; the hiring of a marketing coordinator; and several one-day events including the eclipse.
It would cost her group an estimated $312,000, which included salaries and insurance, to manage those events, she said.
On Monday, Mayor Tom Mackin sent a letter to council indicating the Visit Perrysburg proposal had been rejected by the city’s administration team. He said the proposed five-year agreement has a cost to the city of $835,000.
Mackin in his letter suggested an additional hotel tax of 2% to provide an ongoing funding source for the market, fireworks and more events to promote the city.
“Once this funding source is acquired, the administration will utilize the city’s procurement process to procure an entity to manage the market and possibly other events,” Mackin wrote in his letter.
Best disagreed with several comments made in the mayor’s letter, including his wording when referring to the Sculpture Walk and fireworks.
Committee member Jonathan Smith, who is also president of council, said he would have preferred more conversations before Visit Perrysburg’s plan was rejected.
“I don’t think any of us want to see the market end,” he said, but he didn’t think giving up 70% of the hotel tax was the right number.
“I want to look at all the options we have on the table and be able to see what is going to be the best and what’s going to make sure this happens next year,” Smith said.
A solution needs to be found and he said he wished the mayor was at the committee meeting to answer questions.
Mackin, in his letter, suggested bidding out the operation of city events such as the market days.
Council member Cory Kuhlman, who was in the audience, said the idea of a bid was “asinine.”
“It’s embarrassing, quite frankly, that we’re even discussing it,” he said, and questioned what events would be included as no list has been generated.
Committee Chairman Mark Weber said he was not prepared to move forward without additional information.
“Those are questions that do need to be considered,” he said.
The city’s law director and finance director, who were both at Tuesday’s committee meeting, said they did not know the rationale behind Mackin’s choice of 2% hotel tax increase.
Committee member Tim McCarthy said he needs a better explanation from Mackin on how he foresees these events being operated.
Smith suggested a committee of the whole meeting to continue discussions, but the decision was made to continue with the topic at next Tuesday’s council meeting.
